Host of CNBC’s “Mad Money” Says Brown “Pummeled” The Teamsters
Jim Cramer, the host of CNBC’s Mad Money, went off on our new contract at UPS, telling viewers that the company “pantsed” and “pummeled” the Teamsters and that “Jimmy Hoffa must be rolling over in his Giants Stadium grave.”
Cramer cited the contract as one of the major reasons that UPS is a good bet to deliver higher profits over the rest of the year. Cramer said the contract will save UPS $640 million over the next five years by allowing UPS to pay new drivers less than the top rate.
Cramer called the giveback “a classic example of a union hosing over people who aren’t members yet.”
We don’t know how he calculated the $640 million. But we do know of other huge money-makers for the company in the contract.
By the fifth year of this contract, elimination of the full-time job creation clause in this contract will save approximately $480 million per year for UPS, every year. The union gave away the language in Article 22.3 that required UPS to create 10,000 new full-time combo jobs over the life of the contract.
Splitting 43,000 workers out of the Central States Pension Plan was the single most valuable concession UPS management got from the union. The savings will be many billions over the years—far more than the $6.3 billion the company paid to pull out of Central States.
No wonder UPS management bragged to the Wall Street Journal on July 23 about the big savings the company will get in the new contract
CNBC’s Cramer agrees: “I can’t overemphasize the importance of this contract to UPS. Personally, I love unions. But professionally I love companies that have crushed unions. And UPS, you know what they just did: They pantsed the Teamsters!”
Click here to watch the video of Cramer on Mad Money. Cramer’s comments trashing the contract givebacks come at the six-minute mark.